Abstract

The purpose of this study is to explore the relationship between the choice of mutual fund investment style and investor investment horizon. The investment style is characterized as a measure of the riskiness of the mutual fund and therefore the required/expected return of a mutual fund ranging from large cap value to small cap growth. The results of this study show that investment horizon and investment style are inter-related. Longer investment horizons are best suited for small cap value and small cap growth. In general, for each investment horizon, the large cap value style had the lowest expected return as evidenced by its beta coefficient. The investment style with the highest expected return depends on the investment horizon.

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